Can a Brightstar Care franchisee terminate the Franchise Agreement if Brightstar Care breaches the agreement?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
For franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivision 3, 4, and 5 which requires, except in certain cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
Any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Section 680 - 695 may not be enforceable.
; provided, however, that such general release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Franchisee may, subject to its arbitration obligations, bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
The 2025 Brightstar Care Franchise Disclosure Document does not explicitly state whether a franchisee can terminate the Franchise Agreement if Brightstar Care breaches the agreement. However, the document includes addenda that address specific state laws regarding franchise agreements, including termination and dispute resolution. These addenda modify certain sections of the standard Franchise Agreement to comply with state-specific regulations in Minnesota, New York, North Dakota, and Maryland.
For example, for franchises governed by Minnesota law, Brightstar Care must provide 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in certain cases, as required by Minnesota Statute § 80C.14. For New York, any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Section 680 - 695 may not be enforceable. For Maryland, general releases signed by the franchisee do not apply to any liability under the Maryland Franchise Registration and Disclosure Law, and franchisees may bring actions in Maryland for claims arising under this law, subject to arbitration obligations.
These state-specific provisions suggest that a Brightstar Care franchisee's ability to terminate the agreement for a franchisor breach may depend on the laws of the state in which the franchise operates. The FDD also mentions dispute resolution through mediation and arbitration, which could be relevant if a franchisee seeks to terminate the agreement due to a breach by Brightstar Care. However, the specific conditions and procedures for such termination are not detailed in the provided excerpts.
Prospective Brightstar Care franchisees should carefully review the Franchise Agreement and any state-specific addenda to understand their rights and obligations regarding termination. They should also consult with a franchise attorney to determine the extent to which they can terminate the agreement if Brightstar Care breaches it, considering the applicable state laws and the terms of the Franchise Agreement.